Cloud API launched in 2022 as Meta's direct API offering, removing the need for BSPs (or for businesses to host their own WhatsApp instance, the older 'on-premise API'). It's cheaper per conversation, has no platform middleman, and uses the same conversation pricing as BSP-resold APIs.
The trade-off: you build your own integration (multi-agent inbox, broadcast tool, template manager, automation, CRM) or use open-source alternatives. For tech-capable teams, Cloud API saves significant cost over BSP plans at scale.
Meta's free conversation tier (1,000 service conversations/month) applies regardless of Cloud API or BSP route.